Macroeconomics Quiz 2 part two - chpt 16

Unemployment that is of a short duration to allow time to find a new job is

. Frictional unemployment.

If you look for a job for eighteen months after graduation, but fail to generate an offer, even after lowering your expectations, the economy is probably in the business cycle phase called a:

. Recession.

Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are actively looking for work, 15 of whom are retired, and 15 of whom are house makers. The number of people in the labor force is:

70.

Which one of the following persons would be considered unemployed

A construction worker who was laid off due to bad weather conditions.

A person who has given up searching for work is called:

A discouraged worker

What would be considered frictionally unemployed?

A person who has left one job & is expected to be reemployed within the next two/three weeks.

Which one of the following people would not be considered a part of the labor force

A steel worker who was laid off last year and is no longer seeking work.

A person who voluntarily quits his/her job in New York and expects to get a similar job in Los Angeles in a couple of weeks is an example of:

Frictional unemployment.

The point at which real output (GDP) of an economy reaches a maximum during a business cycle is called the:

Peak.

What groups of people in the U.S. are members of the labor force?

People over 16 years of age who are employed or seeking employment.

Economists usually use the term "recession" to refer to:

Two or more consecutive quarters of declining real GDP.

The unemployment rate in a country, say, South Africa, equals the number of persons?

Unemployed divided by the number in the labor force.

Full employment occurs when the rate of unemployment consists of:

a. Frictional + seasonal + structural unemployment.

Sarah, a new Ph.D. in economics, has turned down many job offers because she hopes eventually (within the next three/four weeks) to teach at a college of her choice in the field. The type of unemployment she is experiencing is:

a. frictional. b. structural. c. seasonal. d. cyclical. e. underemployment.

John, who works in a typewriter factory, becomes unemployed because people start buying personal computers instead of typewriters. John can best be described as:

a. frictionally unemployed. b. structurally unemployed. c. cyclically unemployed. d. not part of the labor force. e. a discouraged worker.

The problem(s) with the statistics of the unemployment rate is/are that:

all of these are problems.

The business cycle dating committee's determination (at the U.S. Dept of Commerce) of whether the economy is "IN" or "OUT" of a recession is based on the statistics of:

b. Unemployment, industrial production, the sales of goods/services, and the income

The type of unemployment that occurs because of a recession is called:

cyclical unemployment.

Economic growth of a country, say, China, is measured by the annual percentage increase in a nation's level of:

Real GDP.

Economists use the phrase "business cycle" when referring to fluctuations in:

Real GDP.

The period of declining growth in the real GDP of a country between the peak of a business cycle and the trough is called a(n):

Recessionary phase.

The period of growth in real GDP between the trough of the business cycle and the next peak is called the:

Recovery or expansionary phase.

In a dynamic economy, such as the U.S. economy, under ideal conditions

Some unemployment would be present due to workers temporarily being out of work, for example, while changing jobs.

A general mismatch between the skills of unemployed workers and the skills needed by employers with job openings results in:

Structural unemployment.

One business cycle is the period of time in which

The economy moves from Peak to Trough and then, again, to Peak.

The U.S. economy is considered to be at full employment when:

The rate of cyclical unemployment is zero.

Which of the following generally occurs during the recessionary phase of a business cycle?

The sales of most businesses decline, and the unemployment rate rises.

Full employment, in the U.S., is the rate of employment that results when:

only frictional, seasonal, and structural unemployment are present.